S&P 500 4357,8 +95,4.
Federal Reserve officials voted Wednesday to lift interest rates and penciled in six more increases by year’s end, the most aggressive pace in more than 15 years, in an escalating effort to slow inflation that is running at its highest levels in four decades (WSJ headlines).
The bond market reacted immediately to the hawkish attitude of the Fed: the yield curve started to invert as the 5 years T bond surpassed the 10 years yield. As in the past, we tend to think that the US central bank will not be able to fulfill ist objectives and will be obliged to reverse course at one point or another.
In the meantime, the stock market reacted well as some of our indicators point out to agressive buyings across the board: shorts covering their positions or hedge strategies being lifted.
Breadth closed on a strong note : 3440 stocks finished up compared to 919 that settled down. Options trading was fairly neutral. The weekly survey among private investors is fairly positive with a bull to bear ratio around 50, usually a short term bottom.
|Very short term oscillator||Positive +|
|Short term oscillator||Negative -|
|RVI trend||Positive +|
|Trend short term (5 days)||
|Trend mid term (8 days)||
|Differential of trends||
|Risk profile||36 (scale of 1 (low risk) to 100 (high risk))|